Rehabilitation method when nothing in trading goes well
Hello everyone, rehab time! Struggling with BTCFX position sizing@xi10jun1です。
The overall cryptocurrency market, including Bitcoin, has been trending downward. With few positive catalysts, it’s a market that’s hard to buy into.
There have been some reports of stop-losses being hit.
※This column is designed so that half of it can be read for free, a generous-hearted setup. Of course, it would be very encouraging if you read through the paid portion (updated once a week for 400 yen per month, so about 80–100 yen per article). I’d be grateful if you support it like a tip!
This Week's Performance (March 23, 2018 – March 29, 2018)
First, as usual, here are the results. I’ll announce the gains and losses first.
- Last week (up to March 23, 2018) assets: 62,467 yen
- This week (up to March 29, 2018) assets: 63,355 yen
- Change: +888 yen
This week I managed to take profits nicely with the N-shaped rebound pattern that I’m good at.
The new SFD system for bitFlyer’s Lightning FX doesn’t seem to have major issues, so I’m relieved for now. Following last week, there don’t appear to be any trading methods exploiting loopholes or unusual chart movements.
However, the market is turning worse this time. From what I’ve seen on Twitter, some are bravely buying, but the impression is that stop-loss reports are more common.
So this time I’ll write about how I rehabilitate when I repeatedly hit stop-losses.
There are times when nothing in trading goes right
Not only in BTCFX, but in stocks and FX, there are periods when nothing goes right as you trade.
I don’t know why, but the positions I take all go against me. It feels like I’m being watched; every long goes down after I buy, every short goes up after I sell.
And then I end up taking losses, significantly reducing my assets.
By the way, some famous investors say in interviews that they’ve “never lost,” which is such a bogus answer. If you look at all their trades, they do lose in detail. Perhaps they mean they don’t lose overall because they’re profitable overall.
Anyway, in investing, everyone experiences periods when losses shrink assets.
Rehabilitation method: Create a factual footing for taking profits
I’ve fallen into this state in BTCFX before, and my rehabilitation was to create a factual footing by securing profits.
I cut off the bad momentum for sure. It’s not about making profits, but about breaking the bad momentum through taking profits as a form of stop-loss.
So even just 1 yen is fine. Just 1 yen.
Profit-taking, by creating a factual footing, helps me regain composure.
Free section: How to avoid getting stuck in a rut
There’s an account on Twitter repeatedly losing in futures trading, and this year it seems all they do are stop-losses.
When you’re in that state, it’s hard to get out. You get frustrated and take positions, then keep taking stop-losses and lose assets. I was once there.
So I regain by experiencing the positive state of profit-taking again, and I conduct trades as rehabilitation to soak in that mood. It’s like a routine, so the rehabilitation method will naturally differ from person to person.
However, even a 1 yen profit helps me to return to profitability after a while. When you’re stuck in a loss rut, do something to break it and reclaim yourself.
So this paid column discusses the future outlook.
Endnote Corner 1: Latest information on taxes! Updated February 9, 2018!
The National Tax Agency site has updated the latest legal interpretations regarding Bitcoin.
Here it is →No.1524 Taxation related to profits from using Bitcoin | Income Tax | National Tax Agency
Note added December 1, 2017: A document on how to calculate income was posted on the National Tax Agency site.
Here it is →Methods for calculating income related to virtual currencies (pdf) | National Tax Agency
※There may still be changes to laws or tax interpretations that affect how you file taxes. Before filing, be sure to confirm with your nearest tax office or a tax professional.
Note added February 9, 2018: services to help calculate cryptocurrency taxes are appearing at various places. BitFlyer released that you can use a service called CRYPTACT to calculate profits from your trading history.
BitFlyer release here →News about the renewal of "Trading Report" and taxes on Bitcoin and other cryptocurrencies (pdf)
CRYPTACT here →https://tax.cryptact.com/
CRYPTACT is free to use and supports 15 exchanges (domestic: bitFlyer, Zaif, bitbank, coincheck, GMO Coin; international: binance, bitfinex, bittrex, changelly, CoinExchange, cryptopia, HitBTC, kraken, poloniex, Quoine) and 1,680 types of cryptocurrency, enabling tax calculations across multiple companies.
However, as noted in the BitFlyer release, the results of using the service for tax filing are not guaranteed by any exchange operator, Cryptact, EY Tax Corporation, or myself. File taxes at your own risk.
Endnote Corner 2: In planning
I’m thinking of writing about new cryptocurrency-related news and information soon, but I haven’t come up with anything yet. I’ll post it here as soon as a plan is decided!
※ The free content ends here. From here on, it is detailed analysis and future outlook, so it is paid. For those who want to read more, of course, your support by tipping is greatly appreciated! Thank you for your continued support.
